DSCR stands for debt service coverage ratio: the property's rental income compared with its monthly debt payment. DSCR loans let investors qualify primarily on the cash flow of the rental property rather than personal tax returns or W-2 income. That can be helpful for self-employed investors, those with many properties, or anyone whose tax returns don't reflect their real capacity.
These loans typically cover single-family rentals, duplexes, triplexes, and fourplexes held for investment, and sometimes short-term rentals. I review every scenario personally, then with one of NEXA Lending's lenders, to look at what fits your goals.
Common uses
- Purchase of a 1-4 unit rental property
- Rate-and-term or cash-out refinance
- Building or expanding a rental portfolio
- Refinancing out of a fix-and-flip or bridge loan into a long-term rental loan
- Some short-term rental properties
What lenders typically review
- Market rent or existing lease income
- The property's projected debt service coverage
- Credit history and reserves
- Property type, condition, and location
- Investment (non-owner-occupied) use
How I work your dscr investor loans request
Here's how I work on every request. You send the basics: property or business, location, amount, and purpose. I personally review the scenario and ask whatever follow-up questions are needed to understand it properly. Then I review it with one of NEXA Lending's in-house commercial lenders, and together we look at realistic options. NEXA Lending provides access to a large network of commercial lenders, so the search isn't limited to a single bank's appetite.
You'll get a straight answer on what looks workable and what doesn't. If we move forward, I stay involved and work with the in-house lender and with you through closing. There is no cost or obligation to submit a scenario, and nothing on this page is an offer or a commitment to lend. Pricing and terms depend on the property, the borrower, and the market at the time.
Questions about dscr investor loans financing
Can I use a DSCR loan for a home I'll live in?
No. DSCR loans are for investment properties. For an owner-occupied home, a residential loan is the right fit.
What if the rent doesn't fully cover the payment?
Some programs allow lower coverage with other compensating factors. It depends on the program and the overall scenario.
Nationwide lending, local office
We finance commercial deals nationwide, in states where NEXA Lending can legally fund. My office is in Kirkland, Washington, and I also work closely with borrowers across Washington, including Kirkland, Tacoma, Spokane. Send the details and I'll confirm how your state and property fit.
Washington rental under $400,000? See the NEXA Lending Washington DSCR page, where some eligible loans may not need a traditional appraisal or title policy.
Submit your deal
Send the basics and I'll review them personally. No cost or obligation.
